Analysts said this weekZimbabweans must brace for higher prices and more hardships in 2008 following what they described as a “meaningless”, “empty” and “disastrous” national budget presented by Finance Minister Samuel Mumbengegwi last Thursday.
University of Zimbabwe business lecturer Anthony Hawkins said the budget was highly inflationary, worsening an already fragile situation where prices of
goods and services are rising daily.
“This was just an exercise with no meaningful impact on the economy. It was like building castles in the air because some of the targets like the input
schemes require foreign exchange which government does not have at the moment,” said Hawkins.
Bulawayo-based economic commentator Eric Bloch described the budget as a mere “statement of intent” which is devoid of any tangible measures to stimulate the struggling economy.
“It was a disastrous budget full of contradictions and which expresses all sorts of positive intents but proposes no real measures to stimulate the economy,” Bloch said.
Mumbengegwi presented a $7 800 trillion “people’s budget” for 2008 dominated by expenditures to boost the rural economy or poor communities, with nothing of substance to revive the productive sector reportedly operating at below a third of its capacity.
An investment banker with a Harare-based commercial bank described Mumbengegwi’s budget as “the emptiest financial statement” he has ever come across and said Zimbabwe was doomed unless the government changed course away from dolling out funds to non-productive activities.
“What is worrisome is that we haven’t seen the end of these reckless patronage programmes, particularly as we head towards elections in the next few months. The nation must brace for more hardships in coming months as the economy starts to take a knock from the effects of the government’s charitable ventures,” said the banker who could not be named for professional reasons. – ZimOnline
Post published in: News